Freelance accounting - what obligations and taxes do you have as a freelancer in Romania?

As a freelancer with a PFA you need to know what taxes you have to pay, and this depends on the tax category you fall into: based on income rules or on the actual system.

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If you are in the income-rule tax category and your annual income does not exceed the 12 minimum wage threshold in your county and category, then you will pay a 10% tax. If your annual income exceeds the 12 minimum wage threshold, you will have to pay contributions to CAS and CASS in addition to the 10%.

If you fall into the second category, real taxation, the tax is calculated on your actual income and is based on the difference between your gross income and your deductible expenses. Similarly, if your income does not exceed the threshold of 12 times the minimum wage, you are taxed at 10%. If your net income exceeds this ceiling, CAS and CASS contributions are added.

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Keeping accounts as a PFA can be a more difficult task. It is mandatory from the very beginning of setting up your PFA to keep a record of all the accounting operations you have carried out and to draw up a register for each one.

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In order to keep accounts as a PFA you must complete the Receipts and Payments Journal and the Inventory Register, but please note that the registration of these two documents with the Tax Administration is not required.

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The Cash Receipts and Payments Register records in chronological order all payments and receipts made, either in cash or bank accounts. This register shall record the date of the transaction, the name and number of the document justifying the transaction, the amount of the transaction and explanations of the nature of the transaction.

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The inventory register records the inventoried assets and liabilities.

In addition to the two mandatory documents, the accounts of a PFA may also include:

1. Fixed means sheet
2. Invoice
3. Notice accompanying the goods
4. Inventory list
5. Receipts, for cash payments or foreign currency transactions
6. Payment/receipt slip to cashier
7. Payroll statement

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